Stanbic IBTC Holdings Plans to Raise N550 Billion in New Capital

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Shareholders of Stanbic IBTC Holdings Plc have approved a plan to raise N550 billion in new capital. The company will raise N150 billion through a rights issue or public offering and set up a N400 billion debt issuance program. This capital boost is to help the company meet the new minimum capital requirements set by the Central Bank of Nigeria (CBN).

Stanbic IBTC Bank Limited, a key subsidiary of the holding company, needs about N91 billion in new equity to meet the new minimum capital base of N200 billion. Currently, Stanbic IBTC has share capital and share premium totaling N109.25 billion, but with the new equity, this will rise to about N260 billion, exceeding the CBN’s requirement.

The plan also includes a dividend conversion scheme where shareholders can choose to receive new shares instead of cash dividends. Shareholders have authorized the board to handle any unsubscribed shares and issue new shares as needed. Additionally, the company plans to establish a N400 billion debt issuance program to raise funds through various debt securities. This comprehensive plan aims to strengthen Stanbic IBTC’s financial position and ensure regulatory compliance.

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